National rental affordability scheme - taxation issues

The national rental affordability scheme (NRAS) encourages large-scale investment in affordable housing. It offers tax and cash incentives to providers of new dwellings, provided they are rented to low, and moderate, income households at 20% below market rates.

The NRAS is no longer taking new investments.

The NRAS started on 1 July 2008 and offers annual incentives for a period of 10 years. The NRAS incentive is tax-free income and has two components:

a Federal Government contribution in the form of a refundable tax offset or payment to the value of $8,286.03 per dwelling per year in 2016–17.

a state or territory contribution in the form of direct financial support or an in-kind contribution to the value of at least $2,762.01 per dwelling per year in 2016–17.

The incentive is indexed in line with the rental component of the consumer price index.

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